SBI Business Loan
SBI Business Loans are provided to individuals who wish to expand their businesses. SBI provides funds to both small and large enterprises at a predetermined interest rate and repayment tenure. For entities engaged in service and manufacturing activities, self-employed individuals, and wholesale and retail trade, SBI offers Simplified Small Business Loans (SSBL). The loan amount ranges from INR 10 to 25 lakhs, with a repayment tenure of 5 years. It is offered as a dropline overdraft facility, with a margin requirement of 10% and minimum collateral of 40%.
Simplified Small Business Loan (SSBL)
| Particulars/Features | Details |
|---|---|
| Target Audience | Business units engaged in services and manufacturing along with self-employed professionals and individuals in retail/wholesale trade |
| Amount Availed | Minimum above Rs 10 lakhs, Maximum Rs 25 lakhs |
| Pricing | Competitive pricing linked to EBLR |
| Margin | 10% that will be ensured through stocks and receivable statements |
| Collateral Security | Minimum 40% in the form of charge on building, assets, and cash equivalents like mutual funds, fixed deposits, etc. |
| Repayment Period | Cash credit is repayable on demand or renewed annually. Dropline overdraft ranges from 12 to 60 months (reducing dropline), including a moratorium of 3 months. |
| Unified Charges | Rs 7500/- plus applicable taxes. This includes processing fee, EM charges, documentation charges, inspection, commitment charges, and remittance charges (1 remittance per day free). |
Table of Contents
Eligibility needed for SSBL
- Businesses lasted for at least 3 consecutive years in the same locality
- The current account holder for the past 2 years in the same bank
- Good credit score and repayment history. Check Your Credit Score Here.
- Must own the place or should have a rent agreement (in case of rented property)
- 1 lakh as the monthly average balance in the last 12 months (with 10,000 as the monthly threshold balance)
- Some bank criteria needed to be followed to prove eligibility.
Types of business loans offered by SBI
| Loan | Features Offered |
|---|---|
| Simplified Small Business Loan (SSBL) | Availed for a particular time period. Amount up to Rs 25 lakhs. Processing fee: INR 7500. Repayment duration up to 5 years. |
| Loan Secured by Assets | Overdraft on the dropline. Up to Rs 20 crore. Processing fee: 1%. Repayment duration: 1-15 years. |
| E-Dealer Financing Scheme | Credit for working capital. Loan amount based on requirement. Processing fee: not more than INR 30,000. Repayment duration: up to 90 days. |
| Commercial Real Estate Asset-Backed Loan | Overdraft on the dropline. Amount up to Rs 20 crore. Processing fee: 1% of limitation. Repayment duration: 1-6 years. |
| Credit for Export Packing | Financing for pre-shipment. Loan amount is need-based. Processing fee: aligns with cash credit (CC) limit. Repayment duration: up to 180 days. |
| Finance for Fleets | Credit for a specific period. Maximum amount: INR 10 crore. Processing fee: 1%. Repayment duration: 5 years and above. |
| Credit Card for Small Businesses | Loan for working capital requirement. Maximum amount: INR 50 lakhs. Processing fee: As per bank instructions. Repayment tenure: up to 5 years. |
| SBI Overdraft Product | Operating an OD facility. Loan amount up to Rs 5 crore. Processing fee: 1% of sanction amount. Repayment tenure: 1 year. |
| E-Vendor Financing Scheme | Loan for working capital requirement. Amount based on requirement. Processing fee: up to INR 50,000. Repayment time depends on the duration of payables. |
SBI loan against property (LAP)
State bank offers loan against property to employees, professionals and self employed individuals including NRIs who own commercial and residential properties in their names or their relatives name.
| LAP Benefits | Scheme |
|---|---|
|
Fully transparent Low processing fee Wide network of branches Interest rate as per daily reducing balance method Zero prepayment penalty Rental income considered for loan eligibility |
Loan availed against residential/commercial property Minimum amount: INR 10 lakhs Maximum amount: INR 7.5 crore Processing fee: 1% + service tax, maximum INR 50,000 + service tax |
| LTV Ratio | Loan Tenure |
|---|---|
| Amount up to INR 1 crore – 65% LTV Amount INR 1 crore and up to INR 7.5 crore – 60% LTV | Minimum – 5 years Maximum – 15 years |
State Bank of India – Small and medium enterprises(SME) financial products
- Surya Shakti solar finance
- Asset-backed loan
- Asset-backed loan – commercial real estate
- E- dealer finance scheme
- E-vendor finance scheme
- Export packing credit
- Fleet finance
- Loans under the contactless lending platform
- PM mudra yojana
- Standup India
- Lease rental discounting
- SME smart score
- Finance to the food processing industry
- SME credit card
- SME gold loan
- SME marble plus
- Loan to business correspondents
- Warehouse receipt finance
- SME car loan
- Rinn Suraksha for micro and small enterprises
- Arthiyas plus
- SME open-term loan
- SME finance for CA firms
- Healthcare business loan
- Commercial vehicle loan
- SBI fleet finance under tie-up with Tata motors finance ltd
- Dall mill plus
- Compressed Biogas under the SATAT scheme
- Small commercial vehicle finance under tie-up with Tata motors ltd
- Small commercial vehicle finance under tie-up with Mahindra and Mahindra
- Finance to Biofuel products SBI exporters gold card scheme.
SBI business loan benefits
| Feature | Details |
|---|---|
| Collateral free loan | MSMEs can avail easy business loans with no collateral. Easy EMIs on amount up to Rs 1 crore. |
| Low-interest rate | Interest rate on SBI business loan is derived from Marginal Cost of Funds Based Lending Rate (MCLR). |
| Convenient process | Simple, quick, and hassle-free, processed in a few minutes. |
| Flexible in repayment | SBI offers an enhanced repayment period: One year for working capital, Fifteen years for monetary loans. |
| Distinct types offered | Amount ranging from INR 10,000 to INR 500 crore are offered. |
| Loans for women | Women entrepreneurs benefit from a 0.05% rate reduction for amounts ranging from INR 2 lakhs to INR 50 lakhs. 50% of company shares must be owned by women industrialists. |
SBI business loan Interest rate & Processing fee
| Loan Details | Information |
|---|---|
| Loan amount | Minimum INR 10,000 and Maximum INR 500 crore |
| Processing fee charged | Processing amount generally ranges from 1% to 5% of the endorsed amount. |
| Interest rate | Start From 12% |
| Repayment duration | 1 to 5 years can be extended depending on business necessities |
| Security | Unsecured business loans don’t require a credit check |
Eligibility for SBI Business loan
- Self-employed individuals, private companies, partnership firms, LLPs involved in manufacturing, trading and service
- Minimum turnover of INR 40 lakhs
- Minimum experience of 3 years in current business and 5 years total experience
- The firm has made a profit in last 2 years
- Minimum annual income (ITR) of INR 1.5 lakhs per month
- The applicant is of 21 years of age and should not be older than 65 years at the time of loan maturity.
SBI Business Loan EMI Calculator
Documents Required
Documents required for SBI business loans are
- Identity proof
- Address proof
- Bank statement of last 6 months
- 12 months GST statement for income computation
- Last 2 years balance sheet, income tax return, and other financial statements like Profit & loss.
- SBI may ask for additional documents
Frequently Asked Questions
Q.1 What factors determine SBI business loan eligibility
There are certain factors determine SBI business loan eligibility
- Age
- Business Type
- Revenue
- Credit score
- Previous business experience
Q.2 What is the margin money for a business loan in SBI?
The minimum margin requirement is 10%, whereas the maximum is 25%.
Q.3 What is the interest rate for an SBI loan in 2025?
SBI business loan interest rate starts from 14% and above.
Q.4 What is the limit of MSME in SBI?
- The limit for Micro enterprises investment does not exceed 1 crore and turnover to be 5 crores as the maximum.
- Medium enterprises investment does not exceed 20 crores and turnover be 100 crores as the maximum.
Q.5 How much money can I save in the SBI account?
There is no ceiling on the maximum balance in a savings account, except for minors and a BSBDA-small account.
*Disclaimer*
The information contained in this website is according to information available on different means on internet and does not guarantees complete accuracy. The given numbers, schemes and products offered may change.
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